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Rep. Ron Paul, (R-Texas), on the Federal Reserve’s actions to help boost the economy.
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-- a four month -- Well the Fed is has made as we mentioned all day huge moves.
Including plans to increase money burning in definitely open ended as they say but will this have the desired effect of giving the economy of post here would be now is congressman Ron Paul and -- first on Fox Business interview congressman wonderful to see you again.
-- just very open ended what do you think it is open ended policy of the Fed.
-- hasn't worked for 45 years now it's hospital work this time.
That you'd think Wall Street loves it so I guess they think about economics differently than I do they just creating new money is gonna create wealth.
But this visit restore confidence in the economy it's it's rather bizarre.
But I think the point you made -- your introductory statement is the fact that the dollar is weaker you know and gold goes up as -- devaluation of the currency.
And that isn't what they were gonna wake up and realize that the economy hasn't recovered through real wealth.
In those stocks justice -- So no it hasn't worked yet and it's not going to work if it did work that means we would have to work anymore we -- just print money and everybody would be happy.
In the world will always take our dollars -- it's not gonna happen I would urge you see the beginning of the end right now of course Wall Street loves that the banks -- -- because they get free money but the Fed's mandate is not to pump up Wall Street.
The Fed's mandate is to -- is to pump up the economy itself which is we heard from Ben Bernanke is getting weaker earnings despite all this money burning of the past.
So he's not -- what is going as if he says that's his goal -- any doesn't mean he's not designed to prop -- Wall Street but he keeps propping up Wall Street.
He doesn't create jobs it proves that economic planning through.
Doesn't work he creates a bottle to create some problems that you can't solve this problem by doing more of the things have.
-- today we have to wake up and challenge.
This whole concept of central economic planning through central banking as well as keynesian economics that we should have intervention in the economy because.
We're witnessing the failure of that whole system of economic policy well.
He doesn't think it's a failure here's what he said in his Jackson Hole speech back in August he said quote Central Bank security purchases have provided.
Meaningful support to the economic recovery while mitigating.
Deflationary risks to which you would say.
Unemployment still out people.
What he's complaining about -- employment.
And the standard of living has not gone up -- they're living goes down needs today declared today.
That he doesn't really want he doesn't work to have inflation but the -- -- -- he's practically praying for inflation so we can liquidate some gap.
This debt cannot be pain you needed default which we won't we'll keep paying the bills.
But you've got to pay back with something cheaper and that's why they weren't.
To liquidate debt through inflation.
And that's what they're waiting on and he believes in his own mind that what we -- get inflation going to start liquidating debt we'll get back on our feet again and I'll stop inflation I have to.
But believe me if he has in the controlling over the last five years.
It when the inflation even get some you know more accelerated.
He does not have control over it and he won't admit it.
By the way our own Peter Barnes ask him a question that is is bothering a lot of people the suggestion that.
In fact he may be trying to reelect President Obama because.
-- Mitt Romney has said if he's elected president he would not reappoint Ben Bernanke and people who think like him.
Do you think that Ben Bernanke is taking sides in this election.
You know unless CNA -- I don't like central banking I don't jump at chances to bash Bernanke.
Plus order wooded say that -- -- I'm more worried about his reputation I think -- really honestly wants to prove.
That he is economic theories work because he put a lifetime -- -- much time in every put into study in the depression.
I mean if I'm right he's wrong it's destroyed his whole pieces.
Oval Office there here for forty years.
So I think he thinks more about that they -- does -- -- against reappoint him he was to be proven right on these issues I think he's truly an active emission.
Rather than -- yacht a party player and he's only doing this war.
Obama and that but there isn't history that Federal Reserve Chairman.
Have in the past tried to accommodate the president has -- -- as a matter at this point the Middle East finally on the Middle East does that make sense.
For us to give money to countries in the Middle East that can't or won't protect our own embassies there.
I don't think it makes it easiest to give anybody anybody ever see who was you and I voluntarily given to it.
Through my believe in the constitution.
In my belief in the foreign policy is that we shouldn't drive trying to buy friendship because they're not long lasting.
Look we bought this friendship we have about we'll -- And -- wasn't worth the investment of forty.
Billion dollars he was first to be friends forever with the Israel.
Now all the radicals have taken over both in each at the end in Libya I think.
Israel is more endangered.
So that's why take the position that we should be doing it so -- we we shouldn't be handing out money and I don't like that -- money on conditions either.
That means as low as you do what we tell you to -- we'll give them money.
But besides the economic arguments investment we don't have any money left we have to go to Bernanke -- -- Can you give us about ten -- -- billion dollars that we can hand out this money.
For policy that doesn't work congressman I have to go -- just a one word answer are you ever going to endorse Mitt Romney for president.
It's probably not.
I was -- two words -- is saying thank you very much congressman Ron Paul good to see you thank you.
